126 Kenanga Investment Bank Berhad Annual Report 2021 Our Sustainability Approach About This Report We Are Kenanga Message From Chairman and GMD b. The AC had also at the same meeting reviewed the list of services provided by the External Auditors during the financial year which comprised audit and regulatory-related services, issuance of a written communication to Management and the AC pertaining to the External Auditors’ audit/ findings, together with the recommendations for improvements in controls and procedures. The External Auditors’ services also included the review of the Statement on Risk Management and Internal Control, as well as other regulatory submission as required under the various regulatory requirements. c. At its meeting held on 24 February 2021, the AC was updated by the External Auditors, on the latest status of the statutory audits conducted on KIBB Group. The AC had, at the same meeting, duly deliberated on the audit matters which required its attention. In respect of the Financial Year Ended 31 December 2020, the External Auditors had reviewed the allocation of the shares under the Employees’ Share Scheme (“ESS”) made to the Eligible Employees and Executive Directors of KIBB and its non-dormant subsidiaries and had reported to the AC at its meeting held on 24 February 2021, that in its opinion, the allotment of shares made under the ESS was in compliance with the criteria for allotment of shares which had been disclosed to the Eligible Employees and Executive Directors of KIBB and its non-dormant subsidiaries. The AC had concurred with the External Auditors’ opinion. d. Pursuant to Section 67(1) of the Financial Services Act 2013 (“FSA”) and Section 76(1) of the Islamic Financial Services Act 2013 (“IFSA”)2 , an auditor appointed by a licensed person shall meet the qualification criteria set out in Bank Negara Malaysia (“BNM”)’s Policy Document on External Auditor and shall continue to meet the criteria throughout the audit engagement. In addition, BNM’s letter dated 3 May 2012 on “Supervisory Expectations on AC Pertaining to the Appointment/ Re-Appointment of External Auditors” also sets out the areas of assessment to be performed. Being a licensed financial institution under the FSA and the IFSA, the Company is required to undertake an annual assessment on areas focusing on performance and independence of External Auditors. In relation to the audit of the Company’s financial statements for the Financial Year Ended 31 December 2020, the External Auditors had given a written assurance to the AC that they were not aware of any relationships or matters that, in their professional judgement, might reasonably be thought to bear on their independence; and that they were independent in accordance with the Bylaws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants, throughout their audit engagement for 2020. This written assurance by the External Auditors was contained in the External Auditors’ report which was presented to the AC on 25 January 2021. Based on the assessment conducted, the AC at the same meeting, had concluded that the External Auditors had fulfilled all the qualification set out in BNM’s Policy Document on External Auditor in terms of its performance and independence and had therefore recommended to the Board that the External Auditors be re-appointed as the Company’s External Auditors for the Financial Year Ending 31 December 2021. 2 By virtue of KIBB providing its services under the Islamic Banking Window
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